It became a quick realization to brick & mortar store owners that sales could come to a complete halt overnight. This is making retail store owners rethink how and where they do business. With e-commerce sales growing, brick and mortar stores will continue to have customers who come into the store to browse, gather Information about a product and later buy the exact same product on line. It happens in many brick & mortar stores with most products - clothing, home goods, sports and outdoor equipment, etc.
This is frustrating fo business owners who have made a considerable investment in the store and inventory. Owners feel very much taken advantage of. Customers come to the store and see, feel and maybe even try on the product. They never seem to think twice about the investment you made as a business owner to stock inventory and the daily cost of having a store front and doing business.
If you are a business owner, how do you respond to a customer who is simply fishing for information? This was a conversation I recently had with a retail business owner.
Let me explain by first sharing a story about when I was shopping for some interior lighting fixtures. I tried desperately to buy lighting locally. Local stores didn't have the variety of lighting inventory or style I was looking for. Plus, not one sales rep took the time to get to know me well enough to be able to recommend the lighting fixtures that met the aesthetics and created the ambiance I desired. Every sales rep simply handed me some catalogues and told me to look for things I liked and then they could get me a price. It quickly became apparent to me that it was easier to do the looking on line where I could sort by style, finish, price point, etc. Another benefit to on-line was that I could shop anytime of day versus having to take time away from my job and visit the showroom between 9 and 5.
Here’s the thing. If the sales rep had provided answers, I would have bought locally and paid more. I see the value in service and knowledge and would have been willing to develop a relationship with someone whom I know, like and trust. This is very important because, as you know, there can be problems with anything you buy. I ended up buying more of my fixtures on line. In my case, when I received my on line order of two wall sconces with glass panels, both were chipped. The on-line company I ordered from sent replacements immediately and didn't even want the chipped pieces returned. What does that say about sales margins! The only products I ordered locally were the track lighting fixtures because I felt the local person did add value by configuring the components and fixtures to the room. Also, I ordered a lighting fixture on line that I ended up not using; it still sits in our basement.
What are the takeaways from the story?
Establish relationships with clients.
Get to know your customers. Find common ground that creates a likeness between both of you. Common ground is mostly found when the customer identifies with the values of your company. So it’s important to have clear values and practice these in every customer interaction. Instead of just greeting a customer with a “Hi”, take time to introduce them to your store. “Hi, thanks for coming into our store. We are about outfitting women in fitness gear that inspires them to reach their best fitness levels.” Wait for a response and then ask. follow up questions, “What exercise do you enjoy for taking care of you?” Ask questions that relate back to your company values.
Do things that build trust. Help the customer find answers and deliver on everything you say you will do. Show them you keep your word and prove that you are working in their best interest. It’s the dating game.
Educate the customer on the pitfalls of e-commerce buying.
For instance, make the customer consider this - if you a buy two light fixtures online, use one and never return the second one (sometimes a restocking fee is assessed), how much did you really save in money and time? How much is a person’s time worth to have someone do the research and shopping so the customer can do the things they love? This is why the personal shopping industry exists. There is a percent of the population who would rather be doing something else - because of money they can earn, frustration, free time - than having to track down their own home decor, lighting, wardrobe etc.
A brick and mortar store can't be competitive with the selection and delivery of online stores.
There are exceptions to every rule and this holds true here as well. Stores that have a strong sense of brand, community and identity have created their own niche. The shopping experience cannot be duplicated when buying on line. For businesses that find themselves in an industry that was traditionally brick and mortar, simply selling inventory should no longer be the business model. You may be in the same industry as on line stores but you need to understand and distinguish how you do business differently. Know what you do, why you do it and how you do it differently.
Brick & mortar stores thrive when they have a strong brand identity
Brick and mortar stores can compete by providing solutions not just product. This goes back to thinking about "what problem are you solving." In this example, think of it like this:
The difference between saying “We sell lighting fixtures” vs. "I create ambiance and atmosphere for the way you want to live. I do this through matching the perfect lighting fixture to your needs."
Engage a sales process to achieve a level of know, like and trust with your customers.
Every question the customer asks is an opportunity for you to share and exchange information about you, what you believe and why your company does what it does.
So when a customer asks, "Who makes this?" answer with something such as "I am so glad you asked that. We are very selective in the brands we carry. They are selected for their quality finish work, design, price point.... But our work is not about the brand or any particular light fixture. We want to work with clients to create ambiance and atmosphere in their homes using lighting and decor that will create the type of environment that is an expression of them and their way of living. So what it is about this light that you like?"
This answer tells the customer what you value, what is your business model and how you do business. The customer gets to know you better. In so many words you have said, “I will provide my expertise in helping you find the best solutions for your home and in exchange, I expect you to buy from me.” This immediately qualifies the customer because if they don't buy into your business model that you just explained, they are not your customer. They will simply go buy on line.
It may be a little scary to take this approach. It’s bold and may cause a few customers to walk out the door without making a purchase. If so, remind yourself, that’s OK they are not my customer. I have saved myself valuable time. What you may also see are fewer sales but a higher average amount per customer. If the customer has bought into your brand story, you will create a strong following and begin earn more of their disposable income.
These tips will help you talk your customer differently while helping you qualify your customer. Pay close attention to how you do business and how you are interacting with customer in your store. With these good practices, your sales will grow.